IFO costingUsing firstin firstout perpetual inventory costin

IFO costingUsing first-in, first-out; perpetual inventory costing; and the fol-lowing information, determine the cost of materials used andthe cost of the July 31 inventory:July 1 Balance on hand, 1,000 yd of linen @ $4.00 each.3 Issued 250 yd.5 Received 500 yd @ $4.50 each.6 Issued 150 yd.10 Issued 110 yd.11 Factory returned 10 yd, which were issued on the 10th, to thestoreroom.15 Received 500 yd @ $5.00 each.20 Returned 300 yd to the vendor from the July 15 purchase.26 Issued 600 yd

Solution

From 1st July( Stock statement onFIFO basis) Purchase Issued Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Total Qty Total Cost Jul-01         1,000 $4 $4,000         1,000 $4,000 03-Jul            250 $4.00 $1,000.00            750 $4 $3,000            750 $3,000 05-Jul            500 $4.50 $2,250.00            750 $4 $3,000            500 $5 $2,250         1,250 $5,250 06-Jul            150 $4.00 $600.00            600 $4 $2,400            500 $5 $2,250         1,100 $4,650 10-Jul            110 $4.00 $440.00            490 $4 $1,960            500 $5 $2,250            990 $4,210 11-Jul -10 $4.00 -$40.00            500 $4 $2,000            500 $5 $2,250         1,000 $4,250 15-Jul 500 $5.00 $2,500.00            500 $4 $2,000            500 $5 $2,250            500 $5 $2,500         1,500 $6,750 20-Jul -300 $5.00 -$1,500.00            200 $4 $800            500 $5 $2,250            500 $5 $2,500         1,200 $5,550 26-Jul 200 $4.00 $800.00            100 $5 $450 400 $4.50 $1,800.00            500 $5 $2,500            600 $2,950 From 1st July( Stock statement onFIFO basis) Purchase Issued Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Total Qty Total Cost Jul-01         1,000 $4 $4,000         1,000 $4,000 03-Jul            250 $4.00 $1,000.00            750 $4 $3,000            750 $3,000 05-Jul            500 $4.50 $2,250.00            750 $4 $3,000            500 $5 $2,250         1,250 $5,250 06-Jul            150 $4.00 $600.00            600 $4 $2,400            500 $5 $2,250         1,100 $4,650 10-Jul            110 $4.00 $440.00            490 $4 $1,960            500 $5 $2,250            990 $4,210 11-Jul -10 $4.00 -$40.00            500 $4 $2,000            500 $5 $2,250         1,000 $4,250 15-Jul 500 $5.00 $2,500.00            500 $4 $2,000            500 $5 $2,250            500 $5 $2,500         1,500 $6,750 20-Jul -300 $5.00 -$1,500.00            200 $4 $800            500 $5 $2,250            500 $5 $2,500         1,200 $5,550 26-Jul 200 $4.00 $800.00            100 $5 $450 400 $4.50 $1,800.00            500 $5 $2,500            600 $2,950